When the Laws related to the field of land and real estate officially take effect with new regulations in the direction of removing difficulties for investors and buyers of social housing and housing for workers, the supply of This segment will increase, thanks to which apartment prices will decrease to a level consistent with people’s real needs.
According to research data from the Vietnam Association of Real Estate Brokers (VARS), the apartment price index in Hanoi and Ho Chi Minh City in 2023 has increased by 38 and 16 percentage points respectively compared to 2019.
In the Hanoi market, apartment prices continuously increase on both the primary and secondary markets. Meanwhile, apartment prices in Ho Chi Minh City have begun to enter the cycle of increasing prices again along with a slow decline in prices in high-end and luxury projects on the secondary market.
The reason is that the demand for housing is skyrocketing while the land fund is gradually depleted, the housing supply is continuously decreasing, combined with the increased value of urban land when infrastructure and public services are upgraded. The reason for the continuous increase in apartment prices has been the establishment of new premises in recent years.
Notably, the strong increase in demand for home purchases is not only from real housing demand but also contributed by a large amount of investment demand when rent prices for old and new apartments in residential areas continuously increased after the lockdown, especially in the context of a recovering market.
Meanwhile, the latest report of Batdongsan.com.vn shows that the level of interest in apartments for sale nationwide in January 2024 increased by 66% compared to the same period in 2023, and the number of real estate listings also increased by 46%. Specifically, the number of apartment searches in Hanoi increased by 71% over the same period, and in Ho Chi Minh City increased by 59%. This trend is similar in most other provinces and cities.
VARS expects that by mid-2025, when the Laws related to land and real estate officially take effect, apartment prices will decrease.
Regarding credit capital, credit for consumer loans and real estate purchases in the first months of 2024 will continue to decline from 2023 even though lending interest rates have remained at a low level. Because the events of inflation, interest rates… are still unpredictable, borrowing money to buy a house and paying monthly debts of over 10 million VND becomes a burden for many families, when they do not make enough money. confidence in future work situation and income.
However, currently home purchase credit has increased slightly at some joint stock commercial banks with diverse real estate ecosystems, as people have begun to invest again.
VARS forecasts that in the short term, apartment prices in the centers of major cities will continue to maintain an upward momentum, especially in the affordable and mid-range segments. Meanwhile, the purchase and resale prices of high-end and luxury projects may record a slight decrease.
VARS expects that by mid-2025, when new laws related to land and real estate will be passed with new regulations in the direction of removing difficulties for investors and buyers of social housing (SHOES), Housing for workers officially takes effect, the supply of this segment will increase. Thanks to that, apartment prices will decrease to a level consistent with people’s real needs.
